BAM 215 – Data Processing

Introduction
 Data refers to the raw facts that do not have much meaning to the user and may include
numbers, letters, symbols, sound or images.
 Information, on the other hand, refers to the meaningful output obtained after processing
the data.
 Therefore the data processing refers to the process of transforming raw data into meaningful
output i.e. information.
 Data processing can be done manually using pen and paper, mechanically using simple
devices like typewriters or electronically using modem data processing tools such as
computers.
 Electronic data processing has become so popular that manual and mechanical methods are
being pushed to obsolescence.

What is a System?

The term system is derived from the Greek word systema, which means an organized
relationship among functioning units or components. A system exists because it is designed
to achieve one or more objectives. We come into daily contact with the transportation
system, telephone system etc. Similarly we talk of the business system and of the
organization as a system consisting of interrelated departments such as production, sales,
and personnel.

There are more than a hundred definitions of the word system but most seem to have a
common thread that suggests that a system is an orderly grouping of interdependent
components linked together according to a plan to achieve a specific objective.

A system is a collection of parts (or subsystems) integrated to accomplish an overall goal (a

system of people is an organization). Systems have input, processes, outputs and outcomes,
with ongoing feedback among these various parts. If one part of the system is removed, the
nature of the system is changed.

The word component may refer to physical parts or a subsystem in a multilevel structure.
The components may be simple or complex, basic or advanced. They may be a single
computer with a keyboard, memory and printer or a series of intelligent terminals linked to
a mainframe.

Elements of a System

The important elements of a system are;

 Output and Inputs

 Processor(s)
 Control
 BAM 215 – Data Processing

 Feedback
 Environment
 Boundaries and Interface

A major objective of a system is to produce an output that has value to its user. Whatever
the nature of the output, it must be within the line with the explanations of the intended
user. Inputs are the elements that enter the system for processing. Output is the outcome of
processing. A system feeds on input to produce output in much the same way that a
business brings in human financial, and material resources to produce goods and services. It
is important to point out here that determining the output is a first step in specifying the
nature, amount and regularity of the input needed to operate a system.

Processor(s)

The processor is the element of a system that involves the actual transformation of input into
output. It is the operational component of the system. Processor may modify the input totally or
personally, depending on the specifications of the output.

Control

The control element guides the system. It is the decision — making sub-system that
controls the pattern of activities governing input, processing and output. In an
organizational context, management as a decision making body controls the inflow
handling and outflow of activities that affects the welfare of the business.

Feedback

Control in a dynamic system is achieved by feedback. Feedback measures output against

standard in some form. After the output is compared against performance standards,
changes can result in the input or processing and consequently, the output.

Feedback may be positive or negative, routine or informational. Positive feedback reinforces

the performance provides the controller with information for action. 

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Environment

The environment is the “super system” within which an organization operates. It is the
source of external elements that unhinge on the system. In fact, it often determines how a
system must function. The organization’s environment, consisting of vendors, competitions
and others, may provide constraints and consequently influence the actual performance of
the business.

Boundaries and Interface

A system should be defined by its boundaries — the limits that identify its components,
processes and interrelationships and interfaces with another system. For example, a teller
system in a commercial bank is restricted to the deposits, withdrawals and related activities
of customers checking and savings accounts. It may exclude mortgage foreclosures, trust
activities and the like.

This means that in systems analysis, knowledge of the boundaries of a given system is
crucial in determining the nature of its interface with other system for successful design.

CLASSIFICATION OF SYSTEMS

1. Manual System

A manual system is like a bookkeeping system in which records maintanance is done by

hand, without using a computer system or any automatic system. In this type of system
transactions are written in journals, from which the information is manually retrieved into a
set of financial statements. These systems suffer from higher rate of inaccuracy, and they are
much slower than computerized systems.

2. Automated System

Automated system is a combination of both software and hardware which is designed and
programmed to work automatically without the need of any human operator to provide
inputs and instructions for each operation.

Manual System Vs Automated System

Speed & Accuracy
The main difference between manual and computerized systems is the speed factor.
Accounting software processes data and creates reports much faster than manual systems.
Calculations are done automatically in software programs, minimizing errors and increasing
efficiency

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Cost Effectiveness
Another difference between manual and computerized systems is cost. Manual accounting
with paper and pencil is much cheaper than a computerized system, which requires a
machine and software. Other expenses associated with accounting software include
training and program maintenance. Expenses can add up fast with costs for printers, paper,
ink and other supplies.

Backup/Storage
A third difference between manual and computerized systems is the ease of backup of a
computerized system. All transactions can be saved and backed up, in case of fire or other
mishap. You cannot do this with paper records, unless you make copies of all pages--a
long and inefficient process.

Examples of Automated and Manual Systems

1. Automobile 
The automobile industry is extremely vast and progressive. The operation techniques being
used in automobiles are improving and getting automized day by day. For example, during
the earlier days, vehicles were dependent on manual transmission systems but in the
present world, the manual system of transmission has been replaced by an automatic
transmission system. 

2. Kitchen Tools
Before modernization, cooking used to be a very hectic job because everything was
required to be done manually. Chopping, peeling, blending, mixing, etc. everything was
done by hands, but in the present world, it has become very easy to cook and serve. The
reason is that most of the appliances that we use in modern kitchens are automatic. 

3. Power Backup Devices

Power backup devices are the best examples of automation. When the regular power supply
goes off, devices like UPS, inverters, etc. directly connect us to the stored backup power.
These devices are helpful as they allow the user to avoid an abrupt power cut off, which is
quite inconvenient.

4. Medical
A person who is subjected to a life support system needs utmost care and observation. Life
support systems and ventilators employ automatic devices to perform various special tasks.
These devices are equipped with multiple sensors that are designed to monitor and observe
the body signals in order to activate the device’s features accordingly. For instance, a
ventilator automatically turns on the artificial oxygen supply as soon as it senses a drop in
the level of oxygen in a person’s body.

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5. Industrial Machinery
In a small scale industry, all the tasks are performed and managed manually with the help of
the workforce; however when it comes to large scale industries, where the production rate
of goods is comparatively higher, and the scenario is different. With the increase in
workload, the need to use automatic robotic arms, conveyor belts, and other related
equipment arises. Automatic machines reduce the possibility of human errors and allow the
work to be performed at a rapid and uniform pace.

6. Agriculture
To increase the quality and quantity of crop production, a number of traditional agricultural
equipment need to be reformed. For the ease of farmers, a lot of machines have been
invented that are capable to do tedious tasks quickly with great precision. Some examples
of automatic machinery currently being used in the agriculture industry include harvesters,
irrigation systems, plowing machines, self-driving tractors, etc.

7. Sports
Sportsmen need regular practice sessions irrespective of the factors like the availability of
training partners, favorable weather, etc. Most players make use of automatic ball throwing
devices. These devices are designed to throw the balls at the person randomly and
automatically. This prepares the player to be spontaneous and get ready for every possible
shot. A person can practice alone with the help of a ball thrower as it completely eliminates
the need for a controller to be present nearby and operate the machine.

SYSTEMS ANALYSIS

It is a process of collecting and interpreting facts, identifying the problems, and

decomposition of a system into its components.
Another definition of System analysis is its evaluation of a particular system to identify the
areas of improvements and make any necessary enhancements, if needed.
System analysis is conducted for the purpose of studying a system or its parts in order to
identify its objectives. It is a problem solving technique that improves the system and
ensures that all the components of the system work efficiently to accomplish their purpose.
Systems Development Life Cycle

The systems development life cycle (SDLC) is the process of understanding how an
information system (IS) can support business needs by designing a system, building it, and
delivering it to users. The stages are described below. The analyst must progress from one
stage to another methodically, answering key questions and achieving results in each stage.

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Step 1: Recognition of Need — What is the Problem?

One must know what the problem is before it can be solved. The basis for a candidate
system is recognition of a need for improving an information system or a procedure. For
example, in a school where payment of school fees is done manually by having students
queue up for the process, the management may inspect to find a way to solve this problem
so that it would be less stressful in the whole process.

The management may want to have an analyst look at it, such an assignment implies a
commitment, especially if the analyst hired from the outside. In larger environments, where
formal procedures are the norm, the analyst’s first task is to prepare a statement specifying
the scope and objective of the problem. This is called the Preliminary Investigation.

Step 2: Feasibility Study

Depending on the results of the initial investigation, the survey is expanded to a more
detailed feasibility study. A feasibility study is a test of a system proposal according to its
workability impact on the organization, ability to meet user needs, and effective use of
resources. It focuses on three major questions:

 What are the user’s demonstrable needs and how does the new system meet them?
 What resources are available for the newly proposed system? Is the problem worth solving?
 What are the likely impact of the proposed system on the organization? How will it fit within
the organization’s master MIS plan?

The objective of a feasibility study is not to solve the problem but to acquire a sense of its
scope. During the study, the problem definition is crystallized and aspects of the problem to
be included in the system are determined. Consequently, costs and benefits are estimated
with greater accuracy at this stage.

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The result of the feasibility study is a formal proposal. This is simply a report – a formal
document detailing the nature and scope of the proposed solution. The proposal
summarizes what is known and what is going to be done. It consists of the following.

1. Statement of the Problem — a carefully worded statement of the problem that led to
analysis.
2. Summary of Findings and Recommendations — a list of the major findings and
recommendations of the study. It is ideal for the user who required quick access to
the results of the analysis of the system under study. Conclusions are stated, followed
by a list of the recommendations and a justification for them.
3. Details of Findings — An outline of the methods and procedures undertaken by the
existing system, followed by coverage of objectives & procedures of the new system.
Included are also discussions of output reports, file structures, and costs and benefits
of the new system.
4. Recommendations and Conclusions — special recommendations regarding the
proposed system, including the personal assignments costs, project schedules, and
target dates.

Three key considerations are involved in the feasibility analysis: economic, technical,
behavioural. This is a crucial decision point in the life cycle. Many projects die here, whereas
the more promising ones continue through implementation. 

Step 3: Analysis

It is a detailed study of the various operations performed by the system and their
relationship within and outside of the system. A key question is — what must be done to
solve the problem? One aspect of analysis is defining the boundaries of the system and
determining whether or not a new system should consider other related systems. During
analysis, data are collected on available files, decision points, and transactions handled by
the present system.

Some logical system models and tools that are used in analysis. Once analysis is completed
the analyst has a firm understanding of what is to be done. The next step is to decide how
the problem might be solved. Thus, in the systems design, we move from the logical to the
physical aspects of the life cycle.

Step 4: Design

The most creative and challenging phase of the system life cycle is system design. The term
design describes both a final system and a process by which it is developed. It refers to the
technical specifications (analogous to the engineer’s blueprints) that will be applied in
implementing the proposed system. It also includes the constructions of programs and
programme testing. The key question here is — How should the problem be solved?

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Step 5: Testing

No system design is ever perfect. Communication problems, programmers negligence or

time constraints create errors that must be eliminated before the system is ready for user
acceptance. A system is tested for online response, volume of transactions, stress, recovery
form failure and usability.

Step 6: Implementation

This phase is less creative than system design. It is primarily concerned with user training,
site preparation, and file conversion. When the new system is linked to terminals and
remote sites the telecommunication network and tests of the network along with the
system are also included under implementation.

During the final testing, user acceptance is tested, followed by user training. Depending on
the nature of the system, extensive user training may be required, conversion usually takes
place at about the same time the user is being trained or later.

Step 7: Evaluation

Evaluation of the system is performed to identify its strengths and weaknesses. The actual
evaluation can occur along any one of the following dimensions:

 Operational Evaluation: Assessment of the manner in which the system functions,

impact.
 Organizational Impact: Identification and measurement of benefits to the organisation
in such areas as financial concerns, operational efficiency and competitive impact.
 Development Performance: Evaluation of the development process in accordance with
such yardsticks as overall development time and effort, conformance to budgets and
standards and other project management criteria.

Step 8: Post - Implementation and Maintenance

Maintenance is necessary to eliminate errors in the working system during its working life
and to tune the system to any variations in its working environment. Often small system
deficiencies are found as a system is brought into operation and changes are made to
remove them.

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WORD PROCESSING PACKAGES

Word processing packages are generally referred to as text editing and manipulating
programs on the computer system, e.g. MS-word

Microsoft Word is a popular word processing software. It helps in arranging written text in
a proper format and giving it a systematic look. This formatted look facilitates easier
reading. It provides spell-check options, formatting functions like cut-copy-paste, and spots
grammatical errors on a real-time basis. It also helps in saving and storing documents.

Basics of Word Processing

Sr.No. Word Processing Concepts & Description

1 Opening Word Processing Package

Word processing package is mostly used in offices on microcomputers.
To open a new document, click on "Start" button and go to "All
Programs" and click on "Microsoft Word".

2 Opening and Closing Documents

Word automatically starts with a blank page. For opening a new file, click
on "New".

3 Page Setup
Page setup options are usually available in "Page Layout" menu.
Parameters defined by the user help in determining how a printed page
will appear.

4 Print Preview
This option is used to view the page or make adjustments before any
document gets printed.

5 Cut, Copy and Paste

In this section, we shall learn how to use cut, copy and paste functions in
Word.

6 Table Manipulation
Manipulation of table includes drawing a table, changing cell width and
height, alignment of text in the cell, deletion/insertion of rows and

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columns, and borders and shading.

Menu Bar

A menu bar is located below the title bar. A menu bar is an application window to furnish
application or window-specific menus. Menu bar has File Menu along with Home, Insert,
Design, Page Layout, References, Mailings, Review, and View.
 File − It has options such as, Save, Save As, Open a New Document, Print, etc.
 Home − It has icons to change Font Size, Style, Alignment, Borders, etc.
 Insert − It has icons to insert Table, Shapes, Chart, Pictures, Screenshot, Header,
Footer, etc.
 Design − It has icons to change Themes, Colors, Fonts, Effects, Page Borders, etc.
 Page Layout − It has icons to set Margins, Orientation, Size, Breaks, Indent etc.
 References − It has icons to Add Text, Update a Table, Insert Footnote, Index.
 Mailings − It has icons to start Mail Merge, Add Labels, Envelopes, etc.
 Review − It has icons for Spelling and Grammar Check, Thesaurus, Word Count,
Comments, Tracking, etc.
 View − It has icons like: Zoom, Print Layout, Switch Windows, Split, etc.

The Uses of Word Processing Packages to Business

Word processing software is widely used for:

 writing documents such as letters, memos, reports, books, articles, notes and faxes
 creating email messages
 producing agendas and minutes of meetings
 generating invoices, statements, referrals and other written material

Features of a Word Processing Package

Professional word processing packages are capable of performing many intricate tasks. Here
is a list of some of the features you would expect to find:
 Editing Facilities: Words or lines can be entered (i.e. inserted) or deleted in any part
of the text with proper alignment. Similarly, there is a facility to ‘recover’ the text
which is deleted by mistake or accidentally. Another facility is that any ‘word’ can be
replaced with a new one throughout the file, wherever the old one appears.
 Spelling and grammar checkers - word processors provide checking of spelling
facility. It provides synonyms (or words with similar meanings). During typing, they
check for wrong or misspelt words as well as grammatically wrong sentences and
indicate by underlining them accordingly.
 Cut and paste — text/graphics can be rearranged within the same document or
between a number of documents. With this facility, one can move a selected text to

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the desired location in the document or another. The cut text is completely removed
from its original place and the paste option allows it to be placed in another location.
 Copy and Paste: it is similar to Cut, only that the selected text is not removed from
its original position but rather, make duplicates of the text.
 Page Formatting — layouts, margins, pagination, etc. are carried out with this
feature. With page formatting, the actual size of paper upon which you want the
document appear when printed, can be set.
 Text Alignment/Text Formatting — e.g. justified, centre, left, right, and full
justification. Text formatting refers to the way the text is desired to appear in the
document. This may include any of the following:
- Paragraph settings
- Line spacing
- Selecting font specifications
- Setting footnotes
- Page numbers, headings for headers and footers, etc.
 Search and Replace – This feature enables you to search the entire document for a
desired word or phrase which can be replaced with another.
 Automatic Page Numbering – With this feature, once you command it the entire
document is paginated using the desired number format and position.
 Sorting Facilities – this facility will re-arrange the selected text in a specific order.
 Macros – a macro is a character or word that represents a series of keystrokes. In Ms
Word, you can automate frequently used tasks by creating and running macros. A
macro is a series of commands and instructions that you group together as a single
command to accomplish a task automatically.
 Tables – tables are created to handle or present data in rows and columns for easy
and better output.
 Mail Merge – this is a feature within word processors that enables users to send a similar
letter or document to multiple recipients. It enables connecting a single form template with a
data source that contains information about the recipient’s name, address and other
predefined and supported data.
Mail Merge printing facility helps in printing same original letter with different
addresses, so that each letter is ‘original’ and not a carbon copy.
 Printing: - it gives a ‘hard-copy’ of the text on pieces of paper. The printing can be
controlled after printing a fixed number of pages r can be resumed from any
specified page number.
 Envelopes/labels
 Newspaper/parallel columns
 Table of contents, indices, table of authorities
 Watermark
 Some desktop publishing capabilities

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Disadvantages of Word Processing Packages

 requires a computer (and electrical power) to write

 data can be lost by a computer malfunction

 requires a computer or printer to view document

 certain languages (esp. Asian languages) require hundreds of symbols not easily
accessed on a keyboard
 symbols and equations are easier to write than create on a computer

MS-Word Layout Tools

The default word document layout tools include the following:
 Title Bar: displays the document name and the application
 Menu Bar: contains the list of menus available inside word, each menu contains a
specific set of commands.
 Standard Toolbar: provides shortcuts in the form of buttons for frequently
performed tasks. In latest versions we have what is called ‘Quick access bar’. The

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basic shortcut commands on this bar include: open, close, save, undo, redo, table,
new page, etc.
 Formatting Toolbar: Contains a list of formatting options available inside the format
menu. Latest versions do not have ‘format menu’, and so the formatting toolbar is
absent.
 Horizontal and Vertical Rulers: used for measurement purposes like any normal
ruler; the default unit of measurement is in inches.
 White Page Area: is the space area where you type, edit and format your
documents.
 Insertion Point: is the blinking vertical line that indicates the position on the screen
(or on the white page area) where text and other graphics can be placed. The
insertion point is also called the cursor.
 Task Pane: is a small window within the word window that provides shortcuts to
commonly used tasks.
 Scroll Bars: are used to move up and down, or left and right in the document.
 Status Bar: displays the details such as the page number the user is working on,
section number, page number out of the total pages, and words count, etc.
contained in the entire document.

Functions of Commonly Used Commands

a) New: creates a new blank document based on the default template
b) Open: opens or finds an existing file
c) Save: save the active file with its current file name, location and file format
d) saveAs: allow the user to save the unsaved document for the first time. It gives
you’re an opportunity to provide the file name of your choice, choose the location
and the type of document you want to save in.
e) Print: provides a dialog box to be completed for printing purposes
f) Print Preview: shows how the document will look when printed
g) Format Painter: copies the format from a selected object or text and applies to
other objects.
h) Undo: reverses the last command, use pull-down menu to undo several steps
i) Redo: reverses the action of the Undo command; use the pull-down menu to redo
several steps
j) Insert Table: inserts a table into the document, or make a table of selected text.
k) Insert Excel Worksheet: inserts an Excel spreadsheet into the Word document.
l) Columns: changes the number of columns in the document
m) Zoom: enlarges or reduces the display of the active document (especially the white
page area), to enhance view.
n) B: makes your text bold
o) I: italicizes your text
p) U: underlines your text
q) Alignment: each button respectively allows you to make your text aligned to the left,
center, right side or justify the text across the page using the buttons.
r) Line Spacing: Allows you to set the amount of space that word puts when you move
to the next line.

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s) Font Colour: Allows you to change the text colour of your choice
t) Page Setup: Allows you to specify the size, margin settings and document
orientation
u) Find: Allows you to search for a text or phrase in the entire document (Ctrl +F)
v) Bullets and Numbering: enables you to set different styles of numbering
automatically (bullets, numbers, or letters or Arabic numerals)
w) Drop Cap: used to drop the letter to different lines
x) Change Case: used to change the case of letters (Upper and Lower cases)
y) Exit: Allows you to exit or close the entire document window.
z) Close: is an option that enables you to close only the file you work on it currently

SPREADSHEET APPLICATION PACKAGES

A spreadsheet is a software program you use to easily perform mathematical calculations

on statistical data and totaling long columns of numbers or determining percentages and
averages.

A spreadsheet, also called an electronic work sheet, is a computer program that organizes
data into rows and columns in the form of a graph. Each row and column can be
manipulated with formulas, commands, and formats. This tool is especially useful for
accountants, financial analysts, and business people to analyze business performance
numbers and results.

Without the help of accounting packages, spreadsheets are often used to prepare financial
statements, budgets, and stock analysis reports. Since this tool is so versatile and easy to
use, it can also increase the analysis time, review capabilities, and understandability of
reports.

Spreadsheet Structure

A spreadsheet consists of a table of cells arranged into columns and rows. Columns are
normally represented by letters and rows by numbers. Each cell, therefore, has an 'address'
and can be located by its column and row – C5 for example.

Cells commonly contain one of five different data types:

1. Boolean values: Boolean or logical values are either TRUE or FALSE. For example, this
could be Male/Female or Yes/No
2. Dates and times: Stores dates and times that can be used in calculations, such as
calculating ages from dates of birth, or wages from hours worked
3. Values: Numbers. Whole numbers (1, 2, 500) and decimals (1.5, 80.45 etc.) can be used
interchangeably within a spreadsheet. For example, a quantity in stock may be

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represented by a whole number, while employee hours may be represented by a

decimal number
4. Text: Descriptive pieces of information such as names, addresses and post codes
5. Formula: Allows you to add, subtract, multiply or divide information in one cell by the
values in another cell. More complicated formulas containing algebraic expressions
and other mathematical equations can also be used
Common Uses of Spreadsheets in Business

1. Storing Data
One of the main uses of spreadsheets in business is storing data. If you have a
business organization, you will need a spreadsheet to store almost any type of
information.

2. Manipulate and Analyze Data

Apart from storage, you can use spreadsheets to manipulate and analyze data.
For example, it contains a feature that allows you to enter custom formulas. You
can use them to perform different functions such as addition, subtraction or
calculating percentage.

3. Presentation/Visualization
Spreadsheets are used often for visualization purposes. They contain different
tools and features that make it possible. For example, you can present your data
in charts or graphs. There are various types of these charts and graphs to choose
from according to your needs.

4. Modeling and Planning

Spreadsheets play a huge role when it comes to planning. You can use them in
two ways. First is by analyzing and visualizing data hence getting a clue of how
your business is doing in various fields. Next, you can highlight areas that need
more attention to growth or reconsideration. The second way to use
spreadsheets in planning is by calculating the potential results due to changes in
your company. 

5. Inform the Decision Making Process

Decisions that a business makes determines whether it will be successful or not.
Spreadsheets help managers and investors to make well-informed decisions.
Through data visualization, management can easily identify the areas of
weaknesses. Having this information at hand all the time it will lead the manager
into making decisions that can make more profits.

6. Business Accounts and Budgeting

Coming up with a budget is not an easy task without the use of spreadsheets.
You can create a table and list the most important things followed by the least

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important. There are features that will show you the sectors that need the most
attention.

7. Invoices
Most spreadsheet platforms will allow you to integrate the invoice template. It
speeds up the process of receiving or dispatching products. The invoice
template can easily fetch data from the spreadsheet hence making the whole
process automated. In addition, it produces very accurate results. Handling
invoices manually or with other external applications is a slow process.

Advantages
Here are some of the common advantages of spreadsheets.
1) They’re free
You can get access to spreadsheet software easily and they’re most often free. The most
common examples are Microsoft Excel and G-Suite, where you can easily access them with
just an internet connection.
2) Easy to use
The spreadsheets software is easy to use. Whether you want to manage your personal
finances or want to make tables for any purpose, it is easy to use. Except for the usage of
complex formulas, anyone can record information in spreadsheets and it doesn’t require
special training.
3) Easy to track payments or inventory
Tracking payments and inventory can be a complex and time taking task, but spreadsheets
make it easy for you. Spreadsheet software can be an affordable option to analyze the
company’s earnings and spending.
4) Business Plan
You can prepare a rough model of your business plan with this. In addition, you can use it
to track various aspects of your company like legal structure, its strengths, weaknesses,
revenue plan, etc. Besides, you can get many online templates for your business.
5) Accounting
Accounting is one of the major functions of spreadsheets. If you’re an accountant and want
free software to create a balance sheet, financial statements, budget, you can use
spreadsheets for it. Furthermore, you can also use them for expense tracking, forecasting
and calculation of loans.
6) Integration
You can integrate your spreadsheet software with other software to boost its productivity.

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7) Formatting
This software allows you to do formatting to navigate lots of financial data. With multiple
formatting options, you can make your user visually appealing and understandable. For
example titling, colouring, etc.

Disadvantages
Though spreadsheets are free and easy to use but they’re not suitable for all businesses due
to:
1) More Chances of Error
They are more chances of human error who use this software for a large amount of data. A
small mistake can cost you thousands of pounds.
2) Difficult to Share Internally
If a single person is managing the spreadsheet, it works well. But if there are more members
added to the team, it’d be difficult to share and update the spreadsheet information with
the whole team.
3) Difficult for Data Visualization
Though you can prepare charts and graphs on spreadsheets but assembling the visual data
on it is a daunting task.
5) Security Risk
Commonly, spreadsheets are not secure and have a greater risk for mismanagement.
Besides, sensitive information can’t be protected from hackers, even if it is protected by a
password.

Some Important Features of MS-Excel

1. Window-based Application: Excel like all other applications (e.g. MS-Word) has
toolbars, shortcut menus, auto correct, online help and wizards. Most of the features
you experienced with Ms-Word can be seen with Excel.
2. Workbooks: are the files in which worksheets related to a project are held.
3. OLE Support: object linking and embedding is a feature through which Excel can
contain any object ike a document, a picture, etc.
4. High Volumes of Data: Excel can contain large volumes of data. A worksheet can
contain 65536 rows and 256 columns of information. A single cell can contain a
maximum of 255 characters. One workbook can contain a maximum of 256
worksheets.
5. Availability of Functions: Several Mathematical, financial and statistical functions
are available in an Excel package.

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6. Availability of Charts and Graphs: Ms-Excel allows users to view data entered as
tables in a graphical form as charts, which helps the user to easily understand,
analyze data & do comparisons.
7. Sorting Capability: Excel has the capability sorting data in ascending or descending
orders.
8. Auto Fill Feature: Excel has the feature which allows to fill cells with repetitive data
such as chronological dates or numbers as well as repeated text.
Getting Started with Excel
An Excel document is called a workbook. By default, Excel workbook contains three-(3)
worksheets designated as Sheet 1, Sheet 2, and Sheet 3. The file extension name for Excel
workbook is .xls
We can start Excel in many ways but the normal way include:
Start  Programs  Microsoft Office Suite  Ms-Excel
Components of the Excel Window
 Rows, Columns & Cell: In a worksheet, rows are numbered from top to bottom. The
columns are labeled with letters from left to right. The cell is the intersection of row
and column. Therefore, cells are referenced using column label and row number, e.g.
C5.
 Title Bar: Like in MS-Word, it contains the file name and the program name.
 Menu Bar: is made up of different menus, e.g. File, home, insert, design, page layout,
etc.
 Active Cell: the cell in which you are working
 Formula Bar: displays the content of the active cell. It is used to edit cell content, or
write formulas that can be executed to display their result in the active cell.
 Name Box: displays the cell address of the active cell. That is, the column letter
followed by the row number, e.g. B6
 Status Bar: located at the very bottom of the screen displays brief information about
activating features within the worksheet area.
 Sheet Tabs: appear above the status bar displaying the name of the worksheets.
Entering Data
You can enter text, numbers and dates in an Excel worksheet directly.
Select the cell  Type the information  Press Enter from the keyboard.
Editing Text
The easiest way to edit the content of a cell is to select the cell and then retype the entry.
The new entry replaces the old contents. Many other ways of editing data shall be seen
through practical sessions.
Aligning Data
By default, any text entered in Excel is automatically aligned to the left and any value or
number is aligned to the right. To change the default alignment, you can use the alignment
buttons on the formation tool bar.

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Formulas
In Excel, one of the powerful features is formulas. A formula is an equation that is used to
perform calculations on data in a worksheet. We can use formula to perform Mathematical,
Statistical & Date/Time operations on a single value or a set of values by using operators.
The cells in which formulas are stored display the result of the calculation and not the
formula itself.
In excel, a formula starts with an equal (=) sign and should be followed by the operation to
be performed. We can use any number of operators in single formula. MS-Excel evaluates
the formula according to the order of precedence of the operators as seen in this table.

Operator Operation Precedence

() Bracket 1

^ Exponentiation 2

*, / Multiplication, division 3

+, - Addition, subtraction 4

& Concatenation 5

=, >, < Comparisons 6

Example of the Formula Expression:

Suppose the values in the cells B2, C2, D2 are 34, 28, and 58 respectively. Now, to
add these values and to have the result in the cell F2,
- Click on the cell in which total marks is to be displayed (i.e. F2)
- Type: “=(B2+C2+D2)”
- Press Enter from the keyboard.
The value of 118 will be displayed in F2.
Functions
A function is a built-in, ready-made and frequently used formula that accepts data,
performs calculations & returns results.
To enter a function in a cell, you either enter in the cell directly or select the cell and enter it
in the formula bar and press enter key from keyboard. Each formula is preceded by equality
sign (=), followed by function name, cell-range within brackets and the colon (:) inbetween
the beginning and last cells. Thus:
“=function_Name(initial_Cell : last_Cell)”
E.g. =SUM(B2:D2) or =AVERAGE(B1:B10)
Mathematical Functions with Syntax and Purpose:
i) Sum(num1, num2,) – gives the sum of the values in a specified range

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ii) Abs(number) – gives the absolute value of the number

iii) Fact(number) – gives the factorial of the number
iv) Sqrt(number) – gives the square root of the number
v) Log(number) – gives the logarithm of the number.
Statistical Functions with Syntax and Purpose:
i) Average(cell range) – calculates the average of the values in a specified range
ii) Stdev(cell range) – calculates the standard deviation of the given data
iii) Mean(cell range) – calculates the mean of the given data
iv) Max(cell range) – gives the maximum value within the range specified
v) Count() – returns the total number of items in the count specified in the list of
argument.

Charts and Chart Types

Charts in Excel are used to represent data pictorially. We can use different types of charts to
represent data, such as:
1. Column charts
2. Bar charts
3. Line charts
4. Pie charts
5. XY (Scatter) charts
6. Area charts
7. Doughnut
8. Radar
9. Surface
10. Bubble
11. Stock
12. Cylinder, cone, & Pyramid

REFERENCES
1. www.javatpoint.com/
2. www.tutorialspoint.com/
3. Etc.

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